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TERMS OP SUBSCRIPTION. Daily—one year $lO oo “ six months 800 '* three months 2 60 Tbi- Weekly—one year 6 00 “ six months 260 Weekly—one year 2 oo “ six months l oo Single conies, 5 cts. To news dealers, 'lli ots. Bu'nscriptions must in all eases be paid in advance. The paper will be discontinued at the expiration of the time paid for. JAS. G. BAILIE. ) FRANCIS COGIN, Proprietors GEO. T. JACKSON,) *S“ Address all Letters to the Constitu tionalist office, AUGUSTA, GA. PRESIDENT'S MESSAGE 7 the Senate and House of liepresentatices: In submitting my seventh annual mes sage to Congress in this centennial year of our national existence as a free and inde l*endent people, it affords me great pleas ure to recur to the advancement that has been made from the time of the colonies one hundred years ago. We were then a people numbering only three millions. Now we number more than forty millions. Then industries were confined almost exclusively to the tillage of the soil. Now, manufac tories absorb much of the labor of the country. Our liberties remain unimpaired. The bondsmen have been freed from slavery. We have become possessed of the respect if not the friendship of all civilized nations. Our progress has been great in all the arts, in science, agriculture, commerce, naviga tion, mining, mechanics, law, medicine, etc.; and in general education the progress is likewise encouraging. Our thirteen States have become thirty-eight, including Colo rado, which has taken the initiatory steps to become a State, and eight Territories, including tho Indian Territory and exclud ing Colorado, making a territory extending from the Atlantic to the Pacific. On the south we have extended to the Gulf of Mexico, and iu the west from the Mississippi to the Pacific. One hundred years ago the cotton gin, the steamship, the railroad, the telegraph, the reaping, sewing and modern printing machines, and numer ous other inventions of scarcely less value to our business and happiness, were en tirely unknown. In 1776 manufactories scarcely existed, even in name, in all this vast territory. In 1870 more than two millions of persons were employed in manu factories, producing more than $2,100,000,- 000 of products iu amount annually, nearly equal to our national debt. From nearly the whole of the jxipulation of 177 H being engaged in the One Occupa tion of agriculture, in 1870, so numerous and diversified had liecome the occupation of our people that less than six millions out of more t ban forty millions were so engaged. The extraordinary effect produced in our country by a resort to diversified occupa tions lias built a market for the products of fertile lands distant from the seaboard and the markets of the world. The American system of locating various and extensive manufactories next to the plow and pasture, and adding connecting railroads and steamboats, has produced in our distant interior country a result notice able by the intelligent portions of all com mercial nations. The ingenuity and skill of American mechanics have been demon strated at home and abroad in a manner most Hattering to their pride. But for the extraordinary genius and ability of our mechanics, the achievements of our agriculturalists, manufacturers and transpoiters throughojt the country would have been impossible of attainment. The progress of the miner has also lieen great. Of coal, our production was small; now many millions of tons are mined annually. So with iron, which formed scarcely an ap preciable part of our products half a century ago, we now produce more than the world consumed at the beginning of our national existence. Lead, zinc and copper from be ing articles of import, we may expect to be large exporters ot iu the near future. The development of gokl and silver mines in the United States and Territories has not only been remarkable, but has had a large influence upon the business of all commercial nations. Our merchants in the last hundred years have had a success anil have established a reputation for enterprise, sagacity, progress and integrity unsur passed by peoples of older nationalities. This “ good mime" is not confined to their homes, but goes out upon every sea and into every port where commerce enters. With equal pride we can point to our progress in all of the learned professions. As we are now about to enter upon our second Centennial, commencing our man hood as a nation, it is well to look back upon ihe past and study what will be best to preserve and advance our future great nos-. From the fall of Adam, for his transgression, to the present day no nation has ever been free from threatened danger - to its prosperity and happiness. We should look to The dangers threaten ing us. and remedy them so far as lies in our power. YVq are a Republic whereof one man is as good as another before the law. Under such a form of government it is of the greatest importance that all should be possessed of education and intelligence enough io cast a vote with a right under standing of its meaning. A large associa tion of ignorant men cannot, for any r con siderable period, oppose a successful re >istance to tyranny and oppression from the educated few, but will inevitably sink to acquiescence to the will of intelligence, ! whether directed by the demagogue or by priestciaft. Hence the education of the! masses becomes of the first necessity for the 1 preservation of our institutions. They are worth preserving, because they I have sec ured the greatest good to the great 1 si portion of the population of any form of government yet devised. All other forms j of government approach it just in propor- | to the general diffusion of education send independence of thought and action. As the primary step, therefore, to our ad vancement in all that has marked our pro- j gross in the past century I suggest for your i irm-st consideration, and most earnestly recommend it, that a constitutional amend ment be submitted to the legislatures of the several States for ratification, making it the duty of each of the several States to estab lish and forever maintain free public schools, adequate to the education of all the chil dren in the rudimentary branches, within their respective limits, irrespective of sex, color, birth-place or religions, forbidding the teaching in said schools of religious, atheistic or pagan tenets, and prohibiting ranting of any school funds or school taxes, or any part thereof, either by legis lative, municipal or otlier authority, for the benefit or in aid, directly or indirectly, of any religious sect or denomination, or in aid or for the benefit of any other object of any nature or kind whatever. In connection with tiiis important ques tion. I would also call your attention to the importance of the correction of an evil that, if permitted to continue, will probably lead to great trouble in our land before the close of the 19th century. It is the accu mulation of vast amounts of untaxeu church property. In 1850 I believe the church property of the United States which paid no tax, municipal or State, amounted to about $83,000,000. In 1860 the amount had doubled. In 1875 it is about $1,000,000,000. By 1900, without check, it is safe to say this property will reach a sum exceeding 000,000,000. So vast a sum receiving ail protection and benefits of the Govern ment, without bearing its proportion of bur dens and expenses of the same, will not be looked upon acquiescently by those who have b>4>ay the taxes. In a growing country where real estate enhances so rapidly with time as in the United States, tliere’is scarcely a limit to the wealth that may be acquired by corpora tions, religious or otherwise, if allowed to retain real estate without taxation. The contemplation of so vast a property as here alluded to without taxation, may lead to sequestration without constitutional author ity and through blood. I would suggest taxation of ail property equally, whether ehumh or corporation, exempting only the last resting place of the dead, and possibly, with proper restrictions, church edifices. Our relations with most of foreign powers continue on a satisfactory and friendly footing. Increased intercourse, the extension of commerce and the cultiva tion of mutual interests have steadily im proved our relations with a large majority of the powers of the world, rendering practicable the peaceful solution of ques tions which from time to time necessarily arise, leaving few which demand extended or particular notice. The correspondence of the Department of State with our diplomatic representatives abroad is transmitted herewith. lam hap py to announce the passage of an act by the General Cortes of Portugal, proclaimed since the adjournment of Congress, for ab- fl)£ (CcmsiituticmnUst Established 1799. oiition of servitude in the Portuguese colo nies. It is to be hoped that such legislation may be another step toward the great con summation to be reached when no man shall lie permitted directly or indirectly, under any guise, excuse or form of law, to hold his fellow man in bondage. lam of opinion also, that it is the duty of the United States, as contributing toward that end, and required by the spirit of the age in which we live, to provide by suitable legis lation that no citizen of the United States shall hold slaves as property in any other country, or be interested therein. Chili has made reparation in the case of the whale ship Good Return, seized without sufficient cause upwards of forty years ago, though she had hitherto denied her The denial was never acquiesced in by this government, and the justice of the claim lias been so earnestly contended for that it has been gratifying that she should have at last acknowledged it. The arbitrator in the case of the United States steamer “Montijo,” for the seizure and detention of which the Government of the United States of Colombia was held ac countable, has decided in favor of the claim. This decision has settled a question which had been pending for several years, and which, while it continued open, might, more or less, disturb the good understand ing which it is desirable should be main tained between the two Republics. A reciprocity treaty with the King of the Hawaiian Islands was concluded some months since. As it contains a stipulation that it shall not take effect until Congress shall enact the proper legislation for that purpose, copies of the instrument are here with submitted, in order that if such should be the pleasure of Congress the necessary legislation upon the subject may be adopted. In March last an arrangement was made thro’ Mr. Cushing, our Minister in Madrid, with the Spanish Government, for the pay ment by the latter to the United States of the sum of SBO,OOO in coin for the purpose of the relief of the families or persons of the ship’s company and certain passengers of the “Yirginius.” This sum was to have been paid in three installments at two months each. It is due to the Spanish Government that I should state that the payments were fully and spontaneously an ticipated by that Government, and that the whole amount was paid within but a few days more than two months from the date of the agreement, a copy of which is here with transmitted. In pursuance of the terms of the adjustment 1 have directed the distribution of the amount among the par ties entitled thereto, including the ship’s company, and such of the passengers as were American citizens. Payments are made accordingly on the application of the parties entitled thereto. The past year has furnished no evidence of an approaching termination of the ruin ous conflict which has been raging for seven years in tho neighboring island of Cuba. The same disregard of the law's of civilized warfare and of the just demands of human ity which have heretofore called for the expressions of condemnation from the nations of Christendom have continued to blacken the sad scene. Desola tion, ruin and pillage are pervading the rich fields of one of the most fertile and productive regions of the earth, and tiie incendiary’s torch firing plantations and valuable factories and buildings, is the agent marking the alternate advance or retreat of contending parties. The pro tracted continuance of this strife seriously affects the interests of all commercial nations, but those of the United States more than others by reason of the close proximity, its larger trade and intercourse with Cuba, and the frequent and intimate personal and social relations which have grown up between its citizens and those of the Island. Moreover, the property of our citizens in Cuba is large and is rendered insecure and depreciated in value and in capacity of production by the continuance of strife and the unnatural mode of its conduct. The same is true, differing only in degree with respect to the interests and people of other nations, and the absence of any reasonable assurance of a near termi nation of the conflict, must, of necessity, soon compel the Slates thus suffering to consider what the interests of theii "ivn people and their duty toward themselves may demand. I have hoped that Spain would be enabled to establish peace in her colony to afford security to the property and to the interests of our citizens, and allow legitimate scope to trade and com merce and the natural productions of the island Because of this hope and from an ex treme reluctance to interfere in the most re mote manner in Ihe affairs of another and a friendly nation, especially of one whose sympathy and friendship in ihe struggling infancy of our own existence, must ever be remembered with gratitude, I have pa tiently and anxiously waited the progress of events. Our own civil conflict is too recent for us not to consider the difficulties which surround a government distracted by a dynastic rebellion at home, at the same time that it has to cope with a separate in surrection in a distant colony, but what ever causes may be produced the situation which so grievously affects our interests, it exists with all its attendant evils, oper ating directly' upon its people. Thus far all the efforts of Spain have proved abortive, and time has marked no improvement in the situation. The armed bands of either side now occupy nearly the same ground as in the past, with the difference from time to time of more lives sacrificed, more property destroyed, and wide extents of fer tile and productive fields, and more and more of valuable property constantly' and wan tonly sacrificed to the incendiary’s torch. In contests of this nature, where a consid erable body' of people, who liave attempted to free themselves of control of superior government, have reach a point in occu pation of territory in power and in general organization as to constitute in fact a body politic. Having a Government in substance as well as in name, possessed of elements of stability and equipped w ith the machinery' for the administration of inter nal policy and Ihe execution of its laws, pre pared and able to administer justice at home aswellasin its dealing with other pow ers, it is within the province of those other powers to recognize its existence as anew and independent nation. In such cases other nations simply' deal with an actually existing condition of things and recognize as one of the powers of the eaith that body politic which, assessing the necessary ele ments, has in fact become anew power. In a word, the creation of anew State is a fact. To establish the condition of tilings essen tial to the recognition of this fact there must be a people occupying a known terri tory united under some known and defined form of government,acknowledged by those subject thereto, iu which the functions of government are administered by usual methods competent to mete out justice to citizens and strangers, to afford remedies for public and for private wrongs, and able to assume the correlative international obli gations, and capable of performing the corresponding international duties resulting from its acquisition of the rights of sover eignty. A power should exist complete in its organization, ready to take and able to maintain its place among the nations of the earth. While conscious that tiie insurrection in Cuba has shown a strength and endurance which make it at least doubtful whether it be in the pow er of Spam to subdue, it seems unquestionable that no such civil organiza tion exists which may be recognized as an independent Government, capable of per forming its international obligations, and entitled to be treated as one of the Powers of the earth. A recognition, under such circumstances, w'ouki be inconsistent with the facts, and would coulpel the Power granting it soon to support the force the Government to which it had really given its only claim of existence. In my judgment the United States should adhere to the policy and the principles which have heretofore been its sure and safe guides in like contests between revolted colonies and their motiier couutry, aud acting only upon the clearest evidence, should avoid any possibility of suspicion or of imputation. A recognition of the independence of Cuba being, in my opinion, impracticable and indefensible, tint question which next AUGUHTA. GEA... WEDNESDAY, DECEMBER 8, 1875. presents itself is that of the recognition of belligerent rights in parties to the contest. In a former message to Congress 1 had occa sion to consider this question, and reached the conclusion that the conflict in Cuba, dreadful and devastative as were its inci dents, did not rise to the fearful dignity of war. Regarding it now after this lapse of time, I am unable to see that any notable success or any marked or real advance on the part of the insurgents has essentially changed the character of the contest. It has ac quired greater age but not greater or more formidable proportions. It is possible that acts of foreign powers, and even acts of Spain herself of this very nature, might be pointed to in defense of such recognition But now, as in its past history, the United States should carefully avoid the false lights which might lead it into the mazes of doubtful law' and of questionable propriety and adhere rigidly and sternly to the rule which has been its guide, doing only that which is right and honest and of good report. The question of according or withholding rights of belligerency must be judged in every case, in view of the particular attend ing facts. Unless justified by necessity, it is always, and justly, regarded as an un friendly act, and a gratuitous demonstra tion of moral support to the rebellion. It is necessary, and it is required when inter ests and rights of another government or of its people are so far affected by a pending civil conflict as to require a definition of its relations to the parties thereto. But this conflict must be one which will be recognized in the sense of internal law as war. Belligerence, too, is a fact. The mere existence of contending armed bodies and their occasional conflicts do not constitute war in the sense referred to. Applying to the existing condition of affairs in Cuba, the tests recognized by pub licists and writers on international law, and which have been observed by nations of dig nity, honesty and power, when free from sensitive or selfiish and unworthy motives I fail to find in insurrection the existence of such a substantial political organization, real, palpable and manifest to the world, having the forms and capable of the ordi nary functions of government toward its own people, and to other States with courts for the administration of justice with a local habitation possessing such organiza tion of force, such material, such occupa tion of territory as to take the contest out of the category of a mere rebellious insur rection or occasional skirmishes, and place it on the terrible footing of war, to which a recognition of belligerency would aim to elevate it. The contest moreover is solely on land. The insurrection has not possessed itself of a single seaport whence it may send forth its flag, nor has it any means of communication with foreign powers except through the military line 9 of its adversaries. No apprehension of any of those sudden and difficult complications which a war on the ocean is apt to precip tate upon the vessels, both commercial and national, and upon the consular officers of other powers calls for the definition of their relations to the parties to the contest, Con sidered as a question of expediency, I re gard the accordance of belligerent rights still to be as unwise and premature as I regard it to be at present in defensible as a measure of right. Such recognition entails upon the country, according to the rights which flow from it, difficult and complicated duties, and re quires the exaction from the contending parties of the strict observance of their rights and obligations. It confers the right of search upon the high seas by ves sels of both parties; it would subject the carrying of arms and munitions of war, which now may be transported freely and without interruption in the vessels of the United States, to detention and to possible seizure. It would give rise to countless vexatious questions, would release the pa rent Government from responsibility for acts done by the insurgents, and would in vest Spain with the right to exercise the supervision recognized by our treaty of 1795 over our commerce on the high seas, a very large part of which, in its traffic between the Atlantic and the Gulf States, and be tween all of them and the States on the Pacific, passes through the waters which wash the shores of Cuba. The exercise of this supervision could scarcely fail to lead, if not to abuses, certainly to collisions per ilous to the pacific relations of the two States. There can be little doubt to what result supervision would before loug draw this natiou It would be unworthy of the United States to inaugurate the possibilities of such a result by measures of questionable right or expediency, or by' any indirection. Apart from any question of theoretical right I am satisfied that while the accord ance of belligerent rights to the insurgents in Cuba might give them a hope and an in ducement to protract tiie struggle, it would be but a delusive hope, and would not re move the evils which this Government and its people are experiencing, but would draw' the United States into complications which it has waited long and suffered much to avoid. The recognition of independence, or of belligerency, being thuSj iu my judg ment, equally inadmissible, it remains to consider what course shall be adopted, should the conflict not soon be brought to an end by acts of the parties themselves, and should the evils which result therefrom, affecting all nations, and particularly the United States, continue. In such event 1 am of opinion that other nations will be compelled to assume the responsibility which devolves upon them, and to seriously consider the only remaining measures, pos sible mediation and intervention. Owing, perhaps, to the large expanse of water separating the island from the penin sula, the want of harmony and of personal sympathy between the inhabitants of the colony and those sent thither to rule them, and want of adaptation of the ancient colonial system of Europe to the present times and the ideas which the events of the past century have developed, the contend ing parties appear to have within themselves no depository of common confidence to suggest w isdom w hen passion and excite ment have their sway, to assume the part of peacemaker. Iu this view in the earlier days of the contest the good offices of the United States as a mediator were tendered in good faith, without any selfish purpose, in the interest of humanity, and in sincere friendship for both parties ; but were at the time declined by Spain, with the declara tion, nevertheless, that at a future time they w'ould be indispensable. No intimation has been received that in the opinion of Spain that time has been reached. And yet the strife continues with all its dread horror and all its injuries to the interests of tiie United Slates and of other nations. Each party' seems quite capable of working great injury and damage to the other, as well as to all the relations and in terests dependent on the existence of peace in tiie Island ; but they seem incapable of reaching any adjustment, and both have thus far failed of achieving any success whereby one party shall possess and control the Island, to the exclusion of the other. Under these circumstance's the agency of others, either by mediation or by interven tion, seems to be the only alternative, which must, sooner or later, he invoked for the termination of the strife. At the same time, while thus impressed, I do not at this time recommend the adoption of any meas ure of intervention. I shall be ready at all times, and as the equal friend of both par ties, to respond to a suggestion that the good offices of the United States will be acceptable to aid in bringing about peace honorable to both. It is due to Spain, so far as this Govern ment is concerned, that the agenqy of a third pow'er (to which I have adverted) shall be adopted only as a last expedient. Had it beeu the desire of the United States to interfere in tiie affairs of Cuba, repeated opportunities for so doing have been pre sented within the last few years, but we have remained passive and have performed our w’hole duty and all international obli gations to Spain with friendship, firmness and fidelity', and with a spirit of patience and forbearance which negatives every pos sible suggestion of desire to interfere or to add to the difficulties with which he has been surrounded, The Government of Spain has recently submitted to our Minister at Madrid certain proposals, which it is hoped may be found to Ire the basis, if not the actual submission of terms to meet the requirements of the particular grief's of which this government lias felt itself entitled to complain. These proposals have not yet reached me on their full text. On their arrival they will Ire taken into careful examination, and may, I hope, lead to a satisfactory adjust ment of the questions to which they refer, and remove the possibility of future occur fences such as have given rise to our just complaints. It is understood, also, that re newed efforts are being made to introduce reforms in the internal administration of the island. Persuaded, however, that a proper regard for the interests of the United States, and of its citizens, entitle it to re lief from the strain to w hich it lias been subjected by the difficulties of the questions and the wrongs and losses which arise from the contest in Cuba, and that the interests of humanity itself demand the cessation of the strife before the whole Island shall be laid waste and larger sacrifices of life be made. I shall feel it my duty, should my hopes of a satisfactory adjustment and of the early restoration of peace and the re moval of future causes of complaint be un liappily disappointed to make a further communication to Congress at some period not far remote, and during the present ses sion, recommending what may then seem to me to be necessary. The free zone, so-called, several years' *ince established by the Mexican Govern ment in certain of the States of that Re- I public adjacent to our frontier remains in full operation. It has always been mate rially injurious to honest traffic, for it ope rates as an incentive to traders in Mexico to supply, without customs charges, the wants of inhabitants on this side of "the line, and prevents the same wants from being sup plied by merchants of the United States; thereby, to a considerable extent, defraud ing our revenue and checking honest com mercial enterprise. Depredations by armed bands from Mex- j ico on the people of Texas, near the fron- I tier, continue. Though tho main object ot j these incursions is robbery they frequently result in the murder of uj. armed and peace ably disposed persons, aim in some instances even the United States postofflees and mail aommunications have been attacked. Re newed remonstrances upon this subject have been addressed to the Mexican govern ment, but without much apparent effect. The military force of this Government, dis posable for service in that quarter, is quite j inadequate! to effectually guard the line, j even at those points where the incursions I are usually made. An experiment of an j armed vessel on the Rio Grande for that , purpose is on trial, and it is hoped that it i not thwarted by the shallowness of the j river, and other natural obstacles, it may : materially contribute to the protection of the herdmen of Texas. The proceedings of the Joint Commission under the Con vention between the United States and Mexico of the 4lli of July, 1868, on the subject ot claims, will soon be brought to a close. The result of those proceedings will then be communicated to Congress. lam j happy to announce that the Government ol Yenezuela has, upon further consideration, practically abandoned its objection to pay to the United States that share of its reve nue which some years since it allotted towards the extinguishment of the claims of foreigners generally. In thus reconsider ing its determination that government has shown a just sense of self-respect which cannot fail to reflect credit upon it in the eyes of all disinterested persons elsewhere. It is to be regretted, however, that its payments on account of claims of citizens ! of the United Strtes are still so meagre in] amount, and that the stipulation of the' treaty in regard to the sums to be paid and the periods when those payments were to take place, should have been so signally 1 disregarded. Since my last annual message, the ex- ! change has been made of the ratification of i a treaty of commerce and navigation with I Belgium and of conventions with the Mexi- \ can Republic; for the further extension of \ the joint commission respecting claims with tiie Hawaiian Islands; ior commercial red procity and with the Ottoman Empire for j extradition, all of which have been duly proclaimed. The Court of Commissioners of Alabama ; Claims has prosecuted its important duties very assiduously and very satisfactorily. It convened and was organized on the 23d day of July, 1875, and by the terms of the act under which it was created was to exist for one year from that date. The act provided, however, that should it be found impracti cable to complete the work of the court be- 1 fore the expiration of the year, the Presi dent might by proclamation extend the I time of its duration to a period not more than six months beyond the expiration of j the one year. Having received satisfactory evidence that it woukl be impracticable to complete the work within the time orig inally fixed, I issued a proclamation, a copy of which is presented herewith, extending the time of duration of tiie court for a period of six months from and after the 22d day of July last. A report made through the clerk of the court, communicated here with, shows the condition of the calender on the first of November last, and the large amount of work which has been accom plished. Thirteen hundred and eighty-two claims have been presented, of which six hundred and eighty-two had been disposed •f at the date of the report. lam informed that 170 cases were decided during the month of November. Arguments are being made and decisions given in the remaining j cases with all the despatch consistent with the proper consideration of the questions submitted. Many of these claims are in behalf of mariners or depend on the evi dence of mariners whose absence has delay ed the taking or the return of the necessary evidence. It is represented to me that it will be im practicable for the Court to finally dispose of all the cases before it within the present limit of its duration. Justice to the parties claimant, who have been at large expense in preparing their claims and obtaining the evidence in their support, suggests a short extension to enable the Court to dispose of all of the claims which have been presented. I recommend the legislation which may be deemed proper to enable the Court to com plete the w ork before it. I recommend that some suitable provision be made, by t lie creation o): a special court, or by conferring the necessary jurisdiction upon some appropriate ribunal. for llie consideration and determination of the claims of aliens against the Government of the United Sfates ; which have arisen within some reasonable limitation of time, or which may hereafter arise, excluding all claims barred by treaty provisions or otherwise. It has been found impossible to give proper consideration to these claims by the execu tive departments of the .Government. Such a tribunal would afford aa. opportunity to aliens, other than British subjects, to pre sent their claims on account of acts com mitted against these persons or property during the rebellion, as also to those sub jects of Great Britain whose claims, having arisen subsequent to the 9th day of April, 1865, could not be presented to the late Commission, organized pursuant to the provisions of the treaty of Washington. The electric telegraph has become an es sential and indispensable agent in the trans mission of business and social messages. Its operation on land and within the limit of particular State 9 is necessarily under the control of the jurisdiction within which it operates. The lines on the high seas, how ever, are not subject to the particular con trol of any one Government. In 1809 a concession wtis granted by the French Government to a company which proposed to lay a cable from the shores of France to the United States. At that tiifie there was a telegraphic connection between the United States and life Continent of Europe (through the possessions of Great Britain at either end of the line), under the control of an association which had at large outlay of capital and at great risk demon strated the practicability of maintaining such means of communication. The cost of correspondence by this agency was great, possibly not too large at the time for a proper remuneration for o hazardous and so costly an enterprise. It was, how'ever, a heavy charge upon a means of communica tion which the progress in the social and commercial intercourse of the w'orld found to be a necessity, and the obtaining of this French concession show'ed that other capital than that already invested was ready to enter into competition, with the assurance of adequate return for their out lay. Impressed with the conviction that the interest not only of the people of the United States, hut of thew'orld at large, de manded, or would demand, the multiplica tion of such means of communication be tween separated continents, 1 was desirous that the proposed connection should be made by certain provisions of this conces sion, were deemed by me to be objection able, particularly one which gave fora long term of y'ears the exclusive right of tele graphic communication by submarine cable between the shores of France and the United States. I could not concede that any' Power should claim the right to land a cable on the shores of the United States, and, at the same time, deny to the United States or to its citizens or grantees an equal right to land a cable on its shores. The right to control the conditions for tiie laying of a cable within the jurisdictional waters of the United States, to connect our shores with those of any foreign State, pertains ex j clusively to the Government ot the United States, under such limitations and condi tions as Congress may impose. In the ab sence of legislation by Congress I was un willing, on the one hand, to yield to a for eign State the right to say that its grantees might land on our shores, while it denied a similar right to our people to land on its shores; and, on the other hand, I was re luctant to deny the great interests of the world and of civilization the facilities of %uch communication as was proposed. I therefore with held any resistance to the landing of the cable on condition that the offensive monopoly feature of the concession be abandoned, and that the right of any cable may be established by authority of this Government to land upon French territory, and to connect with French land lines and enjoy all the necessary' facilities or privi leges incident to the use thereof upon as favorable terms as any other company, be conceded as the result thereof. The com pany in question renounced the exclusive privilege, and the representative of France was informed that, understanding this re linquishment to be construed as granting the enlire reciprocity and equal facilities which had been demanded, the opposition to land - iug of the cable was withdrawn. The cable under this French concession was landed in the month of July', 1869, and has been an efficient and valuable agent of communica tion between this country and the other continent. It soon passed under the control, however, of these who had the management of the cable of Great Britain and this Continent, and whatever benefit to the public might have ensued from the competition between the two lines was lost, leaving only the greater facilities of any additional line, and the additional security in case of accident to one of them ; but these increased facilities and this addi tional security, together with the control of the combined capital of the two companies, gave also greater power to prevent the future construction of other lines and to limit the control of telegraphic communica tion between the two continents to those possessing the lines already' laid. Within a few months past a cable has been laid, known as the United States Direct Cable Company, connecting the United States directly with Great Britain. As soon as Ibis cable was reported to be laid and ii working order, the rates of the then existing consolidated companies w r ere great ly reduced. Soon, however, a break was ' announced in this new cable, and immedi ately the rates of the other line, which had been reduced, were raised. This cable be ing now repaired the rates appear not to be reduced by either line from those formerly charged by the consolidated companies. There is reason to believe that large amounts of capital, both at home and abroad, are ready to seee profitable invest ment in the advancement of this useful and most civilizing means of intercourse and correspondence. They await, however, the assurance of the means and conditions on which they may safely be made tributary to the general good. As these cable telegraph lines connect separate States there are ques tions as to their organization and control which probably can be best, if not solely, settled by Conventions between the respec tive States. In the absence, however, of International Canventions on the subject, municipal legislation may secure points which appear to me important, if not in dispensable. for the protection of the pub lic against the extortions which may result from a monopoly of the right of operating cable telgerams or from a combination be tween several lines. First. No line should be allowed to land on the shores of the United States, under the concession of another Power, which docs not admit the right of any other line or lines formed in the United States to land and freely connect with and operate through its land lines. Second. No line should be allowed to land on the shores of the United States which is not, by treaty stipulation with the Government from whose shores it proceeds, or by prohibition in its charter or other- to the satisfaction of this Govern ment, prohibited from consolidating or amalgamating with any other cable tele graph line, or combining therewith for the purpose of regulating and maintaining the cost of telegraphing. Third. All lines should be bound to give precedence in the transmission of the official messages of the governments of the two countries between which it may be laid. Fourth. A power should be reserved to the two governments, either conjointly or to each as regards the messages despatched from its shores to fix a limit to the charges to be demanded for transmission of mes sages. 1 present this subject to the earnest con sideration of Congress. In the meantime, and unless Congress otherwise direct, I shall not oppose the landing of any telegraphic cable which complies with and assents to the points above enumerated, hut will feel it my duty to prevent the landing of any which does not conform to the first and second points, as stated, and which will not stipulate to concede to this Government the precedence in the transmission of its official messages and will not enter into a satisfactory ar rangement with regard to its charges. Among the pressing and important sub jects to which, in m3' opinion, the attention of Congress should be directed are those relating to fraudulent naturalization and expatriation. The United States, with great liberality, offers its citizenship to all who, in good faith, comply with the requirements of law. These requirements are as simple and upon as favorable terms to the emigrant as the high privilege to which he is admitted can or should permit. I do not propose any additional require ments to those w hich the law now T demands, hut the very simplicity and w T ant of unne cessary formality in our law have made fraudulent naturalization not infrequent, to the discredit and injury of all honest citi zens, w hether native or naturalized. Cases of this character are continually ; being brought to the notice of the Govern i meat by our representatives abroad, and also | those of persons residents in other coun tries, most frequentl}' those who, if they have remained in their country long enough to entitle them to become naturalized, liave generally not much overpassed that period, and have returned to the country of their origin where they reside, avoiding all duties to the United States, by their absence, and claiming to be exempt from all duties to the country of their nativity, of their residence by reason of their alleged naturalization. It is due to this Government itself and to the great mass of the naturalized citizens, who entire!}', both in name and in fact, be come citizens of the United States, that the I high privilege of citizenship of the United Slates should not be held by fraud or in derogation of the laws, and of the good name of every honest citizen. On many occasions it has b >mu brought to the knowledge of the Government that cer tificates of naturalization are held and pro tection or interference claimed by parties, w’ho admit, that not only they were not within the United States at the* time of the pretended naturalization, but that they have never resided iu the United States; in others, the certificate and record of the court show on their face that the person claiming to he naturalized had not resided the required time in the United States; in others, it is admitted, upon examination, that the requirements of law have not been complied with; in some cases even such eer titicates have been a matter of purchase. These are nut isolated cases, arising at rare intervals, hut of common occurrence, and which are reported from all quarters of the globe. Such occurrences cannot and do hot fail to reflect upon the Government and injure all honest citizens. Such a fraud being discovered, however, there is no prac ticable means within the control of the the Government by which the record of naturalization can be vacated, and should the certificate be taken up, as it usually is, by the diplomatic and consular representa tives of the Government to whom it may have been presented, there is nothing to pre vent the person claiming to have been natu ralized from obtaining anew certificate from the court, in place of that which has been taken from him. The evil has become so great and of such frequent occurrence that 1 cannot too earn estly' recommend that some effective meas ures be adopted to provide a proper remedy' and means for the vacating of any' record thus fraudulently made, and of punishing the guilty parties to the transaction. In this connection I refer also to the question of expatriation and the election of nation ality. The United States was foremost in up holding the right of expatriation, and was principally instrumental in overthrowing the doctrine of perpetual allegiance. Con gress has declared the right of expatriation to boa natural and inherent right of all people • but while many other nations have enacted laws providing what formalities shall be necessary to work a change of alle giance, the United States has enacted provisions of law' and has in no respect marked out how and when expatriation may be accomplished by r its citizens. Distances a brought to the attention of the Government where citizens of the United States, either naturalized or native born, have formally become citizens or subjects of a foreign power, but wluf, nevertheless, in the absence of any provisions of legislation on this question, when involved in difficul ties, or when it seems to be their interest to claim to be citizens of the United States, and demand the intervention of a Govern ment w hich they have long since abandoned, and to which for years they have rendered no service, nor held themselves in any way amenable. In other cases naturalized citi zens immediately after naturalization have returned to their native country, have be come engaged in business, have accepted offices or pursuits inconsistent with Ameri can citizenship, and evidence no intent to return to the United States until called upon to discharge some duly to the country where they are residing, when at once they' assert their citizenship, and call upon the repre sentatives of the Government to aid them in their unjust pretensions. It is but jus tice to all bona fide citizens, that no doubt should exist on such questions, and that Congress should determine by enactment of law', how expatriation may be accomplished and change of citizenship be established. I also invite your attention to the neces sity of regulating by law the status of American women who may marry foreign ers, and of defining more full}' that of chil dren born in a foreign country of Ameri can parents, who may reside abroad; and also of some further provision regulating or giving legal effect to marriages of Ameri can citizens contracted in foreign countries. The correspondence submitted herewith shows a few of the constantly occurring questions on these points presented to the consideration of the Government There are few subjects to engage the attention of Congress on which more delicate relations, or more important interests are dependent. In the month of July lust the building erected for the Department of State was taken possession of and occupied by that Department. I aui happy to announce that the archives and valuable papers of the Government in the custody of that Depart ment are now safely deposited and properly cared for. The report of the Secretary of the Treas ury shows the receipts from customs, for the fiscal year ending June 30, 1874, to have been $168,103,888.69, and for the fiscal year ending June 30, 1875, to have been $i57,- 167,722.35-a decrease for the last fiscal year of $5,936,111.34. Receipts from in ternal revenue for the year ending 30tli of June, 1874, were $102,409,784.90, and for the year ending 30th of June, 1875. sllO,- 007,493.58; increase, $7,597,708.68. The report also shows a complete history of the workings of the department for the last year, and contains recommendations for reforms and for legislation, which I Wncur in, but cannot comment on so fully as I should like to do, if space would permit, but will confine myself to a few suggestions which 1 look upon as vital to the best in terests of the whole people coming within the purview of the Treasury—l mean specie resumption. Too much stress cannot be laid upon this question, and I hope Congress may be in duced, at the earliest day practicable, to insure the consummation of the act of the Congress, at its last session, to bring about specie resumption on and after the Ist day of January, 1879, at furthest. It would be a great blessing if this could he consum mated even at an earlier day. Nothing seems to me more certain than that a full, healthy and permanent reaction canuot take place in favor of the industries and finan cial welfare of the country until we return to a measure of values recognized through out the civilized world. While we use a currency not equivalent to this standard— the world’s recognized standard, specie, be comes a commodity like the products of the soil, the surplus seeking a market wherever there is a demand for it. Under our present system we should want none, nor would we have any, were it not that customs dues must be paiu in coin, and because of the pledge to pay interest on the public debt in coin. The yield of precious metals would fiow out for the purchase of foreign productions, and leave the United States ‘‘hewers of wood and drawers of water” because of wiser legislation on tiie subject of finance by the nations with whom we nave dealings. I am not prepared to say that I can suggest the best legislation to secure the end most heartily recommended. It will be a source of great gratification to me to be able to approve any measure of Congress looking effectively toward secur ing “ resumption.” Unlimited inflation would probably bring about specie pay r ments more speedily than any legislation looking to the redemption of the legal tenders in coin; hut it would be at the ex pense of honor. The legal tenders would have no value beyond settling present lia bilities, or, properly speaking, repudiating them. They would buy nothing after their debts were all settled. There are a few measures which seem to me important in this connec tion, and which I commend to your earnest consideration : First. A repeal of so much of the legal tender act as makes these notes receiv able for debts contracted after a date to be fixed in the act itself, say not later than the Ist of January, 1877. ’ We should then have quotations at real values, not fictitious ones. Gold would no longer he at a pre mium, hut currency at a discount. A healthy reaction would set iu at once, and with it a desire to make the currency equal to what it purports to be. The merchants, manufacturers and trades men of every calling could do business on a fair margin of profit, the money to he re ceived having become an unvarying value. Laborers and all classes who work for stip ulated pay or salary would receive more for their income because extra profits would no longer be charged by the capitalists to com. pensate for the risks of a downward fluct uation in the value of the currency. Second. That the Secretary of the Treas ury he authorized to redeem, say not tp ex New Series —Vol. 28, No, 106 ceed $2,000,000 monthly of legal tender notes by issuing iu their stead a long bond bearing interest at the rate of 3 65-100 per cent, per annum of denominations ranging from SSO to SI,OOO each. This would in time reduce the legal tender notes to a vol ume that could he kept afloat without de manding redemption in large sums sud denly. Tnird. That additional power be given to tire Secretary of Treasury to accumulate gold for final redemption, either by increas ing revenue, curtailing expenses, or both. It is preferable to do both; and I recom mend that reduction of expenditures he made wherever it can be done without im pairing Government obligation or crippling the due execution thereof. One measure for increasing the revenue, and the only one 1 think of is, the restoration of the duty on tea and coffee. These duties would add probably $18,000,000 to the present amount received from imports, and would in no way increase the prices paid for the articles by the consumers. These articles are the pro ducts of countries collecting revenue from exports, and as we, the largest consumers, reduce the duties they proportionally in crease them. With this addition to the revenue many duties now collected, and which give hut an insignificant return for the cost of collection, might be remitted, and to the direct advantage of consumers at home. I would mention those articles which enter into the manufacturers of all sorts. All duty paid upon such articles go directly to the cost of the articles, when manufac tured here, and must be paid for by the consumers. These duties not only come from the consumers at home, but act as a protection to foreign manufacturers of the same completed articles in our own and dis tant markets. I will suggest or mention another subject bearing upon the problem of “ How to enable the Secretary of the Treasury to accumulate balances.” It is to devise some better method of verifying claims against the Government than at present exists, through the Court of Claims —especially those claims growing out of the late war. Nothing is more certain than that a very large percentage of the amounts passed and paid are either wholly fraudu lent, or are far in excess of the real losses sustained. A large amount of losses, proven'on good testimony, according to existing laws, by affidavits of fictitious or unscrupulous per sons, to have been sustained on small farms and plantations, are not only far beyond the possible yield of those places for any one year, but, as every one knows who has had experience in tilling the soil, and who lias visited the scenes of these spoliations, are, in many instances, more than the individual claimants were ever worth, including their personal and real estate. The report of the Attorney General, which will be submitted to Congress at an early day, will contain a detailed history of awards made and of claims pending of the class here referred to. The report of the Secrelary of War ac companying this message gives a detailed account of army operations for the year just passed, expenses for maintenance,etc., with recommendations for legislation, to which I respectfully invite your attention. To some of these’ I invite your special attention. First. The necessity of making $300,000 of the appropriation for the subsistence debt available before the beginning of the next fiscal year. Without this provision troops at points distant from supply pro duction must either go without food or ex isting laws must be violated. It is not at tended with cost to the treasury. Second. His recommendation for tha enactment of a system of annuities for the families of diseased officers by voluntary deductions from the monthly pay of offi cers. This is not attended witli burden upon the Treasury and would for the future re lieve much distress which every old army officer has witnessed in the past, of officers dying suddenly, or being killed, leaving families without even the means of reach ing their friends, if fortunate enough to have friends to aid them. Third. The repeal of the law abolishing mileage and a return to the old system. Fourth. The trial with torpedoes, under | the Corps of Engineers, and appropriation for the same. Should war ever occur be tween the United States and any nmratine power, torpedoes will be among, if not the most effective and cheapest auxiliary for the defence of harbors, and also in aggress ive operations, that we can have. Hence, it is advisable to learn by experiment their best construction and application as well as effect. \ Fifth. A permanent organization for the Signal Service Corps. This service has now become a necessity, of peace as well as war, untler the advancement made by the present able management. Sixth. A renewal of the appropriation for compiling the official records of the war, etc. The condition of our Navy at this time is a subject of satisfaction. It does not contain, it is true, any of the powerful cruising iron-clads which make so much of the maritime strength of some other nations; hut neither our continental situa tion nor our foreign policy requires that we should have a large number of ships of this character, while this situation and the nature of our ports combine to make those other nations little dangerous to us under any circumstances. t >ur Navy does contain, however, a con siderable number of iron-clads of the Mon itor class, which, though not properly cruisers, are powerful and effective for har bor defence and for operations near our own shores. Of these, all the single tur reted ones, fifteen in number, have been substantially rebuilt, their rotten wooden beams replaced with iron, their hulls strengthened and their engines and ma chinery thoroughly repaired, so that they are now in the most efficient condition and ready for sea as soon as they can be manned and put in commission. The five double turreted iron-clads belonging to our Navy, by far the most powerful of our ships for fighting purposes, are also in hand under going complete repairs, and could be ready for sea in periods varying from four to six months. With these completed according to the present design, and our two iron torpedo boats now' ready, our iron-clad fleet will he for the purposes of defense at home equal to any force that can readily be brought against it. Of our wooden navy, also, cruisers of various sizes, to the number of about forty, including those now in com mission, are in the Atlantic, and could be ready for duty as fast as men could be en listed for tfrose not already in commission. Of these, one-third are in effect new' ships, and though some of the remainder need considerable repairs to their boilers and machinery, they all are or can readily be made effective. This constitutes a fleet of more than fifty war ships, of which fifteen are iron-clads now in hand on the Atlantic Coast. The Navy has been brought to this condi tion by a judicious and practical application of what could be spared from the current appropriations of the last few years, and from that made to meet the possible emer gency of two years ago. It has been done quietly, without proclamation or display; and though it has necessarily straightened the department in its ordinary expenditure, and, as far as the iron-clads are concerned, has added nothing to the force of the Navy, yet the result is not the less satisfactory, be cause it is to he found in a great increase of real rather than apparent force. The ex penses incurred in the maintenance of an effective naval force in all its branches are necessarily large, hut such force is essential to our position, relations and character, and affects seriously the weight of our principles and policy throughout the whole sphere of national responsibility. The estimates for the regular support of this branch of the service for the next year amount to little less in the aggregate than those made for the current year, hut some additional appropriations are asked for ob jects not included in ordinary maintainanee of the Navy, but believed to be oppressing importance at this time. It would, in my opinion, be wise at once to afford sufficient means for the completion of the five double turretted monitors now' undergoing repairs, which must otherwise advance slowly and only as mousy can be spared from current To Advertisers and Subscribers. Oil JJSD after this date (April 21, 1875.) all editions of the Constitutionalist will be sent free of postage. ! Advertisements must be paid for when han j ded in. unless otherwise stipulated. i AjfftouNCiNO or suggesting Candidates fox office, 20 cents per line each insertion. i Monet may be remitted at our risk by Express i or Postal Order. Cobhespondenck Invited from all sources, Sind valuable special news paid for if used. Rejected Communications will not be re turned, and no notice taken of anonymous letters, or articles written on both sides. expenses. Supplemented by these, our Navy armed with the destructive weapons of modern warfare, manned by our seamen, and in charge of our instructed officers, will present a force powerful for the home purposes of a responsible, though peaceful nation. The report of the Postmaster General, herewith transmitted, gives a full history of the workings of the department for the year just passed. It will be observed that the deficiency to he suppled from tiie general treasury in creased over the amount required for the preceding year. In a country so vast in area as the United States, large portions sparsely settled, it must he expected this important service will be more or less a burden upon the Treasury for many years to come. But there is no branch of the public ser vice which interests the whole people more than that of cheap and rapid transmission of mails to every inhabited part of our ter ritory. Next to the free school the post office is the great educator of the people, and it may well receive the support of the General Government. The subsidy of $150,000 per annum given to vessels of the United States for carrying mails between New York and Rio de Janeiro having ceased on the 30th day of September last, we are without direct mail facilities with the South American States. This is greatly to be regretted, and I do not hesitate to recommend the authorization of a renewal of that contract, and also that the service may he increased from monthly to semi-monthly maiis. The commercial advantage to he gained by a direct line of American steamers to the South American States will far outweigh the expense of the service, By act of Con gress approved March 3d, 1875, almost all mail matter, whether properly mail matter or not, may be sent any distance through the mails in packages not exceeding four pounds in weight for the sum of 16 cents per pound. So far as the transmission of real mail matter goes this would seem en tirely proper; but I suggest that the law be so amended as to exclude from the mails, merchandise of all descriptions, and limit this transportation to articles enumerated and which may he classed as mail matter proper. The discovery of gold in the Black Hills and portion of the Sioux reservation has had the effect to induce a large immigration of miners to that point. Thus far the effort, to protect the treaty rights of Indians to that, section has been successful, hut the next year will certainly witness a large in crease of immigration. The negotiations for tiie relinquishment of the gold fields having failed, it will be necessary for Congress to adopt some measures to relieve the embar rassment growing out of the cause named. The Secretary of the Interior suggests that supplies now appropriated for the sus tenance of that people, being no longer obligatory under the treaty of 1868, hut simply a gratuity, may he issued or with held, at liis discretion. The condition of the Indian Territory, to which I have re ferred in several of my former annual mes sages, remains practically unchanged. The Secretary of the Interior lias taken measures to obtain a full report of the con dition of that Territory, and will make it the subject of a special report at an early day. It may then he necessary to make some further recommendation in regard to legislation for the government of that Ter ritory. The steady growth and increase of the business,of the Patent Office indicates, in some measure, the progress of the industrial activity of the country. Tiie receipts of the office are in excess of its expenditures, and the office generally in a prosperous ami sat isfaetory condition. Tiie report of the General Land Office snows that there were 2,459.601 acres less disposed of during this than during the last year. More than one-half of this decrease was in lands disposed of under the home stead and timber culture laws. The cause of this decrease is supposed to he found in the grasshopper scourge, and the droughts which prevailed so extensively in some of the former States and Territories during that time as to discourage and deter entries by actual settlers Thecash receipis were less by $690,322.23 than during the preceding year. The entire surveyed area of the public do main i5680,253,094 acres, of which 26,077,531 acres were surveyed during the past year, leaving 1,154,471,762 acres still unsurveyed. The report of the Commissioner presents many interesting suggestions in regard to the management and disposition of the public domain and the modification of ex isting law's, the apparent importance of which should insure for them the careful consideration of Congress. The number of penwoners still continues to decrease, the highest number having been reached during the year ending June 30th, 1873. During the last year 11,557 names were added to the rolls, and 12,977 were dropped therefrom, showing a net decrease of 1,429. But while the number of pensioners has decreased, the annual amount due on the pension r.lls has in creased $14,753,13. This is caused by the greatly increased average rate of pensions which, by the liberal legislation of <’on gress, has increased from S9O 26 in 1872 to $103.91 in 1875, to each invalid pensioner, an increase In the average rate of fifteen per cent, in the three years. During the year ending June 30, 1875, there was paid on accoii nt of pensions, including the expenses of disbursement, $29,683,116, being $910,632 less than was paid the preceding year. This reduction n amount of expenditures was produced by the decrease in the amount of arr arages due or allowed claims and on pensions, the rate of which was increased by the legislation of the pre ceding session of Congress. At the close of the last fiscal year there were on pension rolls 234,821 persons, of whom 2)0,363 were army pensioners, 105,478 being invalids, and If 4,885 widows and dependent relatives; 3,420 were navy pensioners, of whom 1.G36 invalids, and 1,784 widows and dependent relatives; 21,038 were pensioners of the war of 181;!, 15,875 of whom were survivors, and 5,136 were widows. It is estimated that $29,535,000 will ho required for the payment of pensions for the next fiscal year, $965,000 less than the estimate for the present year. The geological explorations have been prosecuted with energy during the year, covering an area of übout 40,000 square miles in the Territories of Colorado, Utah and New Mexico, developing the agiicultu ral and mineral resources, and furnishing interesting scientific and topographical de tails of that region. The method for treatment of the Indians, adopted at the beginning of my first term, has been steadily pursued, and with sat isfactory and encouraging results. It has been productive of evidont im provement In condition of that race, and will be continued with only such modifica tions es further experience may indicate to be necessary. The board heroto r oro appointed to take charge of articles and materials pertaining to the War, the Navy, the Treasury and in terior and Post Office departments, and the departments of Agriculture, the Smithso nian Institution and the commissioners of food and fishes, to be contributed under the legislation of last session to tiie In ternational Exhibition, to be held at Phila delphia during the Centennial year, 1876, has been diligent in the discharge of the duties which have devolved upon it, and the preparations so far made with the means at command, give assurance that the Government contribution will be made oneof the marked characteristic of the Exhi bition. The Board has observed commenda ble economy in the matter of erecting of a building for the Government exhibition the expense of which is estimated, will n>t exceed SBO,OOO, this amount has been with drawn under the law from the appropria tions of five of the principal departments, which leaves some of these departments without sufficient means t render their respective practicable exhibits complete and satisfactory. The exhibition being an International one, and the Government being a voluntary contributor, it is my opinion that contribu tions should be of a character in quality and extent to sustain the dignity and credit of so distinguished a contributor. The advantages to the country of a cred itable display are, in an international point of view, of the first importance; while an indifferent or increditable participation by the Government would be humiliating to the patriotic feelings of our people them selves. I commend the estimates of the Board for tho necessary additional appro priations to the favorable consideration of Congress. The powers of Europe almost without except on, many of the South American States, and even the more dUf*